The European Commission has proposed raising the EU-wide levy on non-recycled plastic packaging waste, in order to account for inflation, which has eroded the real value of the current charge. Introduced in 2021 as part of measures to balance the budget after Brexit, the levy has already generated an estimated € 7.2 billion in revenue.
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Commission Proposes Adjustment for Inflation
Under the new plan, the EU-wide levy on non-recycled plastic packaging waste will be raised from € 0.80/kg to € 1/kg, starting in 2028. It would also be linked to inflation through annual adjustments. In addition, other existing financial mechanisms, such as VAT base caps and lump sum reductions, would be discontinued in favor of a simpler structure.
Industry Groups Oppose Increase
Leading trade organizations, including European Plastics Converters, Plastics Europe, and Petcore Europe, have voiced strong concerns about the proposed increase, arguing that many EU Member States are not yet fully prepared to implement the levy system effectively.
Their position is that a higher fee risks discouraging much-needed investment in recycling and waste management infrastructure. Instead of driving environmental progress, the adjustment may push Member States to seek alternative revenue sources that do not directly support sustainability.
Call for a Dedicated Fund
The groups emphasize that the levy should not be treated as a general revenue stream for the EU budget. Instead, they call for the proceeds to be ringfenced and reinvested in a dedicated fund, aimed at supporting circular economy initiatives within the plastics sector.
Such a fund would provide vital financing for the development of improved collection, sorting, and recycling systems. It would also help integrate recycled materials into new products and sustain industry competitiveness amid challenges such as high energy costs, compliance demands, and ongoing plant closures across Europe.
Legislative Context
Industry representatives point out that the sector is already under pressure to meet ambitious recycling and circularity targets set by EU legislation. The Packaging and Packaging Waste Regulation requires recycled content levels of 10-35 % in all plastic packaging by 2030, alongside full recyclability standards. Other regulatory measures, including the Waste Framework Directive and Eco-design for Sustainable Products Regulation, reinforce the push toward circularity.
Against this backdrop, industry bodies argue that additional financial burdens from higher levies risk undermining the resources needed to meet these targets.
Conclusion
While the European Commission sees the levy increase as a necessary correction to inflation, industry groups insist the priority should be ensuring funds are directly used to accelerate the transition to circular plastics. The debate highlights the tension between fiscal policy and environmental objectives, with the future competitiveness of Europe’s plastics sector hanging in the balance.
